Thursday, October 6

Japan’s 10-year yields flat ahead of US labor data

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TOKYO — Japan’s 10-year government bond yields were flat at 0.235% on Friday, ahead of the release of a key report on US labor data.

The key report on nonfarm payrolls data, which is due later in the day, is likely to further cement expectations the US Federal Reserve will continue with outsized rate hikes after three consecutive increases of 75 basis points.

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Yields on super longer-ends tracked US Treasury peers higher.

The 20-year JGB yield rose 2.5 basis points to 0.905% and the 30-year JGB yield rose 4 basis points to 1.260%.

The 40-year JGB yield rose 6 basis points to 1.410%.

Investors also eyed a 30-year bond auction next week, said a market participant.

The two-year JGB yield fell 0.5 basis point to -0.085%.

The five-year yield was flat at 0.015%.

Benchmark 10-year JGB futures fell 0.16 point to 149.27, with a trading volume of 14,231 lots. (Reporting by Tokyo markets team; Editing by Krishna Chandra Eluri)